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Debt
 12 Months Ended
Dec. 31, 2011
Debt  
Mortgage Notes Payable Disclosure [Text Block]

Note B - Mortgage Notes Payable

 

 

Principal

Balance At

December 31,

Monthly

 

 

Principal

 

Payment

Stated

 

Balance

 

Including

Interest

Maturity

Due At

Property

2011

2010

Interest

Rate (1)

Date

Maturity

 

(in thousands)

(in thousands)

 

 

(in thousands)

Lakeside at Vinings

 

 

 

 

 

 

  Mountain

 

 

 

 

 

 

1st mortgage

$14,883

$ 5,449

    $  85

5.53%

06/01/21

$12,405

2nd mortgage

     --

  3,848

       --

--

--

     --

Greenspoint at

 

 

 

 

 

 

  Paradise Valley

 

 

 

 

 

 

1st mortgage

  9,362

  9,652

       66

5.31%

05/01/17(2)

  7,526

2nd mortgage

  2,813

  2,876

       19

5.79%

05/01/17(2)

  2,413

3rd mortgage

  1,642

  1,678

       11

5.82%

05/01/17(2)

  1,408

4th mortgage

  1,642

  1,678

       11

5.82%

05/01/17(2)

  1,408

The Peak at Vinings

 

 

 

 

 

 

 Mountain

 

 

 

 

 

 

1st mortgage

 15,724

  6,154

       90

5.54%

06/01/21

 13,109

2nd mortgage

     --

  3,848

       --

--

--

     --

Tamarind Bay

 

 

 

 

 

 

  Apartments

 

 

 

 

 

 

1st mortgage

  3,783

  3,839

       27

7.11%

09/01/21

  2,993

2nd mortgage

  2,961

  2,999

       19

6.31%

09/01/21

  2,430

 

$52,810

$42,021

    $ 328

 

 

$43,692

 

(1)   Fixed rate mortgages.

 

(2)   The mortgage lender can exercise a call option on May 1, 2012 and every fifth anniversary thereafter. The mortgage lender declined to exercise its option to call the mortgages on May 1, 2012. The Partnership anticipates the mortgage lender to exercise its option to call the mortgages due in full on the next call date of May 1, 2017. The first mortgage has a stated maturity date of June 1, 2030.  The second, third and fourth mortgages have a stated maturity of October 1, 2033.

 

On May 2, 2011, the Partnership refinanced the mortgage debt encumbering Lakeside at Vinings Mountain. The refinancing replaced the existing mortgage loans, which at the time of refinancing had an aggregate principal balance of approximately $9,170,000, with a new mortgage loan in the principal amount of $14,982,000. The new loan bears interest at a rate of 5.53% per annum and requires monthly payments of principal and interest of approximately $85,000 beginning on July 1, 2011, through the June 1, 2021 maturity date.  The new mortgage loan has a balloon payment of approximately $12,405,000 due at maturity. The Partnership may prepay the mortgage at any time with 30 days written notice to the lender, subject to a prepayment penalty. In connection with the payoff of the existing mortgage debt, the Partnership recognized a loss on early extinguishment of debt of approximately $482,000 during the year ended December 31, 2011, due to the write off of unamortized loan costs and a prepayment penalty. Total capitalized loan costs associated with the new mortgage were approximately $189,000 and are included in other assets.

 

On May 2, 2011, the Partnership refinanced the mortgage debt encumbering The Peak at Vinings Mountain. The refinancing replaced the existing mortgage loans, which at the time of refinancing had an aggregate principal balance of approximately $9,861,000, with a new mortgage loan in the principal amount of $15,828,000. The new loan bears interest at a rate of 5.54% per annum and requires monthly payments of principal and interest of approximately $90,000 beginning on July 1, 2011, through the June 1, 2021 maturity date. The new mortgage loan has a balloon payment of approximately $13,109,000 due at maturity. The Partnership may prepay the mortgage at any time with 30 days written notice to the lender, subject to a prepayment penalty. In connection with the payoff of the existing mortgage debt, the Partnership recognized a loss on early extinguishment of debt of approximately $515,000 during the year ended December 31, 2011, due to the write off of unamortized loan costs and a prepayment penalty. Total capitalized loan costs associated with the new mortgage were approximately $201,000 and are included in other assets.

 

The mortgage notes payable are non-recourse and are secured by a pledge of the Partnership’s investment properties and by a pledge of revenues from the respective investment properties.  The mortgage notes payable include a prepayment penalty if repaid prior to maturity. Further, the properties may not be sold subject to existing indebtedness.

 

Scheduled principal payments of the mortgage notes payable subsequent to December 31, 2011 are as follows (in thousands):

 

2012

$   973

2013

  1,029

2014

  1,089

2015

  1,152

2016

  1,219

Thereafter

 47,348

 

$52,810